Government says Iraq 'not written off'

Australia had not written off its trade relationship with Iraq, Trade Minister Mark Vaile said today.

Mr Vaile said Australia had to find a balance between trade engagements and its responsibility as a member of the United Nations.

"We have not written off Iraq or the food-for-oil arrangement through the UN," he told reporters.

"We will continue to constructively and sensibly work through these issues to try and maintain that market presence.

"At the same time, we can't abrogate our responsibilities as a responsible member of the international community. ");document.write("

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"We have got to manage to balance our trade engagements with different parts of the world and also our international responsibilities as a member of the UN in supporting those Security Council resolutions."

Iraq has turned away several shipments of Australian wheat and threatened to severe contracts worth more than $800 million.

It has said it is reacting to comments by Foreign Minister Alexander Downer over Iraq and its response to UN demands to allow weapons inspectors into the country.